While going over some Relative Rotation Graphs showing the rotations for individual stocks, the tail for AMD in the Technology sector caught my attention.

In this edition of Sector Spotlight, I look at last week's performance and rotations for asset classes and stock sectors. After the break, I move on to share my views on various levels of the investment pyramid, highlighting the possibility for an explosive move in the stock/bond relationship.

This video was originally broadcast on October 20th, 2020. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page, or click this link to watch on YouTube.

From time to time, I present Long/Short or Pair Trading ideas in my weekly Sector Spotlight show on StockCharts TV. During the past few months, I have started to track these ideas as a portfolio. This is by no means an advisory service or a model portfolio of any kind, but more an example of the practical implementations of ideas generated from Relative Rotation Graphs. This is particularly because I sometimes do not spend enough attention to these positions and only look at them from time to time, which causes me to be (too) late to exit positions that start to impact the portfolio negatively.

Having said that, nevertheless, it remains an interesting exercise to keep up with.

In this edition of Sector Spotlight, I cover rotational developments over the last two weeks for asset classes and sectors. After that, I take a look at the current positions in the Long/Short basket, which is up well over 10% since March.

This video was originally broadcast on October 13th, 2020. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page, or click this link to watch on YouTube.

The chart above shows the daily price bars for ADBE, in combination with the RRG-Lines and raw Relative Strength.

In this edition of Sector Spotlight, with September drawing to an end, I dive into the monthly seasonality, finding some very interesting seasonal patterns for Technology and Communication Services on the one hand and Energy and Health Care on the other. History suggests a 2% out-performance for Technology in October, while the S&P closed higher almost 70% of the time with an average return of 1.6%. Combine that with a strong rotation on the RRG and we're looking at another stellar month coming up for Technology.

This video was originally broadcast on September 29th, 2020. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page, or click this link to watch on YouTube.

The erratic rotations that we discussed last week are still ongoing. Looking back at the rotational action on the RRG for US sectors last week shows that the focus of investors is shifting back to Technology and Communication Services again.

The S&P 500 and the Nasdaq 100 are probably the most discussed charts/indexes. The Dow Jones Industrials is probably the most well known index. From an RRG point of view, the breakdown of the S&P 500 into its sectors is probably the most-watched RRG.

In this edition of Sector Spotlight, I spend the show talking about current market rotations. I begin with the overview of last week's rotations in asset classes and US sectors, then switch to weekly charts to step away from the erratic daily rotations; this way, I can get a better handle on the underlying trends.

This video was originally broadcast on September 22nd, 2020. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page, or click this link to watch on YouTube.

The Relative Rotation Graph above shows the rotation for US sectors on a daily basis at the start of this new week (20.09.21).

At yesterday's close XLK, the technology sector, rotated into the lagging quadrant. This happened a few times since the market started to rally out of the March low. On the daily chart to be exact.

In this edition of Sector Spotlight, I present the usual look at the rotations for Asset Classes and US Sectors via Relative Rotation Graphs. In addition, the better part of the show is spent on answering questions from the mailbag. These questions range from slowing down animations on RRGs to setting alerts for scans. If you have any questions, please put them in the comment section or send me an email; chances are high that they will be addressed in an upcoming episode of Sector Spotlight.

This video was originally broadcast on September 8th, 2020. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page, or click this link to watch on YouTube.

Last week, the rotations for the Communication Services and Technology sectors continued on their trajectory deeper into the weakening quadrant, heading towards lagging. As always with relative strength, one sector's loss is another sector's gain - or, in this case three sectors' losses are the remaining sectors' gains.

Last week's selloff primarily hit some mega-cap names in Technology, Communication Services and Discretionary stocks. For sure, it shook up markets pretty well and, as usual, the selling of risk assets led to an inflow into risk-off assets like bonds and more defensive sectors.

In this edition of Sector Spotlight, I break down the events of last week's volatile price action and how that translates into the tails on the Relative Rotation Graphs; I then put these price moves into a slightly longer-term perspective. Julius also dives into the Long/Short baskets, first looking at the existing positions and the performance so far and then making some amendments to the portfolio, trying to pick up some new emerging rotations.

This video was originally broadcast on September 8th, 2020. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page, or click this link to watch on YouTube.

Last Tuesday in Sector Spotlight, as well as in my last article of the RRG blog, I discussed seasonality for US sectors. While going over the table showing the average returns per sector per month, my eye fell on another number... the minus-one percent (-1%) for the Technology sector. This is interesting as the seasonal over-/under-performance shows 45%, which means that technology has outperformed SPY only 45% of the time in the past.

Usually, I do not pay too much attention to seasonality figures between 40-60 as they are too much of a coin toss. But the combination of 45% outperformance and a minus 1% historical underperformance for the month is noteworthy.

In this edition of Sector Spotlight, I look at last week's rotations using daily Relative Rotation Graphs and go over the completed monthly charts for August to catch up on the long-term trends. After the break, I analyze the seasonality for US sectors and look for alignment of expected over-/underperformance with the tails on RRG. Materials (XLB) is lining up for a weak month, while Communication Services (XLC) has a more promising rotation ahead.

This video was originally broadcast on September 1st, 2020. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page, or click this link to watch on YouTube.

The graph above shows the percentage of months in which sectors have outperformed the S&P 500 in the past. For most sectors, the data go back 20 years, with the exceptions of XLC and XLRE, as these sectors were only introduced more recently and the historical data does not go back that far (back-filled).

Seasonal Over- / Under-Performance

This is a chart that I show at the start of or shortly before a new month begins in my weekly show Sector Spotlight. For the coming month of September, there are a few interesting observations to make.

On the weekly Relative Rotation Graph for the DJ Industrials universe, NKE is inside the weakening quadrant after a completed rotation on the right side of the graph (Leading-Weakening-Leading). And over the last few weeks the tail on NKE has again started to curl back up.

In this edition of Sector Spotlight, I work my way through the investment pyramid in a top-down fashion using RRGs. After the break, I analyze an RRG that holds the industry indexes that make up the technology sector to get a more granular handle on the rotations of various groups inside the sector.

This video was originally broadcast on August 25th, 2020. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page, or click this link to watch on YouTube.